USAirways: Hell-bent on creating history's worst airline

[FWAAA]

http://www.fool.com/investing/general/2012/04/23/us-airways-hell-bent-on-creating-historys-worst-a.aspx

Ouch. The author certainly has an axe to grind with US. Wonder why he hates US?

 

[etops1]

Whatever <_<

 

[TWU informer]

I've got my opinion also.

So what?

 

[luvthe9]

And we have the best management team in the business that can accomplish that!!!!!!!

 

[WorldTraveler]

and to think I didn't even write it... but this is exactly the type of microscope under which AA/US would have to go under... and why AA mgmt is highly unlikely to support it since they serve the creditors who will see all kinds of red flags in the deal.
.
AA standalone is still first choice.. and if US forces a bidding process - which they very well may do since they have EVERYTHING to lose by allowing AA to successfully restructure and then be forced to compete against AA, DL, and UA on the east coast - then US will certainly lose - which is why US will keep trying because any hope of success is better than the certain failure that US faces.

 

[777 / 767 / 757 Love]

and to think I didn't even write it... but this is exactly the type of microscope under which AA/US would have to go under... and why AA mgmt is highly unlikely to support it since they serve the creditors who will see all kinds of red flags in the deal.
.
AA standalone is still first choice.. and if US forces a bidding process - which they very well may do since they have EVERYTHING to lose by allowing AA to successfully restructure and then be forced to compete against AA, DL, and UA on the east coast - then US will certainly lose - which is why US will keep trying because any hope of success is better than the certain failure that US faces.

Bingo.

Cheers,
777 / 767 / 757

 

[UPNAWAY]

Seems he could have written the exact same thing about DL/NW or CAL/UAL two airlines that have lost billions over the last 10 years attempt to merge. Not sure at all what his point is.

 

[TWU informer]

Check out the first reader comment after the article

I must have missed when hurling epithets around became a substitute for stock analysis. There are too many inaccuracies in here for me to even get close to truth, but I'll just throw out a few.

1. $40 billion plane order=value at list prices. AA is probably paying $25-$30 billion for buying in such bulk.

2. $16 billion in debt: not sure where you got this number. Perhaps you're including pension liability. Perhaps you overlooked the fact that AA can reject much of its debt and unwanted leases in bankruptcy court.

3. The whole point of bankruptcy is to shed costs that are unnecessary. The fact that US Airways and AMR have both gone through bankruptcy in the last 10 years makes them more competitive, not less. It's also not fair to include pre-bankruptcy cash outflows in an analysis of future prospects.

4. Spirit and Allegiant combined are something like 10% of the size of the combined carrier. They can be very nimble and profitable, but aren't big enough to compete on every route and thus can't do much harm to the legacy carriers.

I'll leave it there...

 

[WorldTraveler]

looks like the US PR machine jumped right on that article....

1. Is $25B worth of aicraft debt manageable when none of their competitors who will be similarly sized have any half that amount?

2. AA's debt is largely secured... they can reject the assets to lower the debt but then they lose those assets.... and there aren't $10B worth of debt secured by M80s.

3. US has been thru BK twice but still does not have an industry leading cost-revenue relationship.


I'll leave it there.

 

[AANOTOK]

I'll leave it there.

Promise? 🙄

 

[Vortilon]

looks like the US PR machine jumped right on that article....

1. Is $25B worth of aicraft debt manageable when none of their competitors who will be similarly sized have any half that amount?

2. AA's debt is largely secured... they can reject the assets to lower the debt but then they lose those assets.... and there aren't $10B worth of debt secured by M80s.

3. US has been thru BK twice but still does not have an industry leading cost-revenue relationship.


I'll leave it there.

As an employee, I will support what pays the most, and offers the best benefits. You will never convince any AA employees on this board that being locked into a 6 year sh!t sandwich for a contract - is the best way to go. If AA gets it's way, (god forbid) yes the employees will still show up to work, but if you think the attitudes and morale are bad now........

 

[Barfbag]

As an employee, I will support what pays the most, and offers the best benefits. You will never convince any AA employees on this board that being locked into a 6 year sh!t sandwich for a contract - is the best way to go. If AA gets it's way, (god forbid) yes the employees will still show up to work, but if you think the attitudes and morale are bad now........

Thats right... No matter which position you end up in now.. You're screwed.

 

[wings396]

looks like the US PR machine jumped right on that article....

1. Is $25B worth of aicraft debt manageable when none of their competitors who will be similarly sized have any half that amount?

2. AA's debt is largely secured... they can reject the assets to lower the debt but then they lose those assets.... and there aren't $10B worth of debt secured by M80s.

3. US has been thru BK twice but still does not have an industry leading cost-revenue relationship.


I'll leave it there.

And the DL PR machine caught it right away....
Good job.

 

[signals]

http://www.fool.com/investing/general/2012/04/23/us-airways-hell-bent-on-creating-historys-worst-a.aspx

Ouch. The author certainly has an axe to grind with US. Wonder why he hates US?

Must be something going around.

 

[signals]

My God, I thought I wrote the article!!!